Shifting Sands and New Models
As the new-build market cools—now representing just 62% of total transactions—resale properties are finding a second wind. Urban townhouses in prime locations, which are increasingly scarce in the new-build sector, are attracting “real demand” buyers due to their accessibility.
In response, Asset Management Companies (AMCs) are pivoting to a new business model: purchasing older homes, renovating them, and re-entering the market with 100% financing packages. This approach targets the middle-to-lower-income segments that are frequently rejected for credit by traditional new-build projects.
Structural Surgery Required
Prasert argues that the industry needs more than just a short-term stimulus; it requires a total structural overhaul. Key proposals from the Thai Condominium Association include:
Immediate Relief: Extending Loan-to-Value (LTV) relaxations and reducing policy interest rates to lower financial burdens.
Legislative Reform: Modernising the “outdated” Condominium Act and extending leasehold terms to 60 years to attract long-term investment.
Transparency: Creating a systematic and transparent framework for foreign ownership, coupled with a robust tax system to fund public infrastructure.
Urban Unlocking: Allowing private developers to revitalise abandoned land along mass transit lines in exchange for government fees.
The coming months will be the ultimate test for Thailand’s property giants. If the 150 billion baht in transfers proceeds as planned, the fuse may be temporarily extinguished. If not, the liquidity crisis could transform from a corporate headache into a national economic emergency.